It was six years ago that Luke Adamczyk and Cameron Santoro started Cannock-based Right Staff Recruitment, specialising in providing temporary staff to the industrial, transport and logistics sectors. While it works with a number of Blue Chip clients, many of whom are household names, getting paid is still an issue.
“It’s the nature of temporary recruitment that we have to pay out before we get paid ourselves,” Cameron explains. “Typically, temp staff are paid weekly, but we have to wait 60 days for the client to pay our invoice. That puts a huge pressure on cashflow and also stifles our ability to grow.”
As Director of Business Operations, Cameron explored various options, including a bank loan. Luke had experience of Invoice Finance from a previous business and so they decided to approach a broker. The broker recommended three potential providers, and Luke and Cameron chose Optimum Finance: “The speed with which they turned around an offer was exceptional,” Cameron says.
“It was literally five working days from our initial discussion, through due diligence to an offer. Since then, we haven’t looked back. The fees we pay are competitive, and any issues we encounter are immediately dealt with.”
Access to liquidity
Invoice Finance is a method of cashflow funding that uses receivables (invoices) as the principal asset against which money can be raised. Optimum Finance pays Right Staff an agreed percentage of the invoice value as soon as it is submitted, driving access to liquidity at the point of invoice as opposed to needing to wait.
“Optimum Finance advances 85% of the invoice value,” Cameron explains, “with access to up to £500,000 at any one time, and this is a tremendous benefit in managing our cashflow. It’s also, crucially, a facility that grows as we grow.
“Previously, growth was hampered by simply not having the cash. But with Invoice Finance, the more business we generate, and the more invoices we raise, the more cash we can access. Optimum Finance has also been very supportive in increasing our facility when the business dictated it.”
Right Staff was an early customer of Optimum Finance and continues to be one of its largest clients. Within the Group, Right Staff also has a further recruitment business, two transport and logistics businesses, a construction business, and a property development company. All benefit from the support of Optimum Finance.
Recruitment is a challenging business to be in. A few years ago, there were too many candidates, and not enough clients, now it is the other way around and it is very candidate driven. Increased competition is also noticeable. Right Staff confronts these challenges by offering something more to the 400 or so temporary staff it has on its books: “We work with a payroll provider who offers a bonus every two weeks to employees showing a consistent attendance,” Cameron says, “as well as cinema tickets and other incentives for their loyalty, and this helps set us apart from the competition.
“I’m excited to see how things develop,” he continues. “We have a good name and an established reputation, and with Optimum Finance by our side, we have an exciting future ahead of us.”